Question

Differentiate between working capital and fixed capital

Answer 1

Fixed capital investments represent the acquisition and maintenance of long-term assets. A fixed capital investment can be tangible asset, such as a building, or an intangible asset, such as an intellectual property. Working capital refers to the deployment of financial resources in the day-to-day business operations.

Answer 2

Here is the answer to your question!!

Difference between Fixed Capital and Working capital are:

FIXED CAPITAL

• Capital used for long time.

• It is permanent.

• One time investment

• Examples : Tools, Machines.

WORKING CAPITAL :

• capital need to be changed.

• It is temporary.

• Invest in rotation basis.

• Examples : Raw materials and money.

Hope it helped!!